City Investigators Seize Cash From New York Sheriff’s Office

The Department of Investigation is looking into whether Sheriff Anthony Miranda’s agency improperly took money from cannabis stores that it raided, closed and padlocked.

City investigators seized cash on Thursday from safes at the New York City Sheriff’s Office, which has raided hundreds of illegal cannabis shops and confiscated millions of dollars in proceeds and merchandise, according to a spokeswoman for Mayor Eric Adams’s administration.

The Department of Investigation is looking into whether the office improperly took money from stores that it had closed and padlocked, according to three people with knowledge of the matter, who requested anonymity to discuss the case without authorization.

The spokeswoman, Liz Garcia, said the agents had been called to the agency’s Queens headquarters at the request of Sheriff Anthony Miranda, who was appointed by Mr. Adams. She said that on Wednesday, Mr. Miranda had discovered money that apparently was not properly accounted for.

“Sheriff Miranda learned of seemingly unvouchered cash held in safe boxes and self-reported the incident to his supervisors,” Ms. Garcia said in a statement Thursday evening. “His supervisors then reported this to the Department of Investigation. We expect every city employee to follow proper procedures.”

The Department of Investigation also has also been looking into whether Mr. Miranda, a former police sergeant, or others acting on his behalf solicited money for a police fraternal organization from merchants in exchange for protection against raids, said two of the people, who are law enforcement officers.

“There’s no factual basis to any of that nonsense,” Mr. Miranda said when reached by telephone Thursday night.

It was unclear whether the investigation into Mr. Miranda had anything to do with the seizure of the money on Thursday.

Marijuana Convictions: Gov. Wes Moore of Maryland signed an executive order that forgives more than 175,000 convictions on low-level charges related to marijuana use.

Americans’ Drug of Choice: A new study shows a growing number of people are regularly using cannabis, while frequent alcohol consumption has remained stable.

Risk to Seniors: In Canada, cannabis poisonings rose sharply among people 65 and older after the country legalized the drug, a new study found.

Easing Restrictions: The Biden administration moved to downgrade marijuana from the most restrictive category of drugs, signaling a significant shift in how the federal government views the substance.

Diane Struzzi, the Department of Investigation’s spokeswoman, on Friday morning said in a statement that the agency was “investigating matters related to the Sheriff’s Office and was present at the sheriff’s Long Island City location yesterday” after getting a report about cash that had been unaccounted for there.

“D.O.I. will not be commenting further as this is an ongoing investigation,” she said.

The Department of Investigation, which looks into fraud, waste and abuse in city agencies, helped the federal authorities bring a sweeping corruption indictment against Mr. Adams, which was unsealed earlier Thursday.

The inquiry into the Sheriff’s Office over seized cash began at least a week ago. But on Wednesday night, Sheriff’s Office officials reported that they had found $70,000 in cash in two safes that they said had not been opened for years, according to one of the people.

On Thursday, the municipal investigators collected the money. It is not clear what other cash or evidence investigators might have found, if any.

The investigation is another cloud over the administration of Mr. Adams, who appointed both Mr. Miranda and Jocelyn E. Strauber, the head of the Department of Investigation. Mr. Adams himself has been indicted on fraud and bribery charges in one of several federal corruption investigations ensnaring his administration. His indictment was unsealed earlier Thursday.

On Thursday night, the heavily industrial slice of Long Island City where the Sheriff’s Office is showed no sign of the investigation. A handful of cars were parked on either side of the street, and even those slowly dwindled in number as the few stragglers at the office made their way out.

Mr. Miranda has put padlocks on about 1,100 of the city’s illicit smoke shops, which officials estimate to total about 3,600. The mayor has boasted frequently about the raids and helped burn four tons of seized cannabis last month during a visit to a special waste facility on Long Island.

Mr. Adams, who appointed Mr. Miranda in 2022, said on Tuesday at his weekly news conference that he remained confident in the sheriff. He said that cash taken from illicit shops had been counted and videotaped by police and sheriff personnel.

“Why would I not have confidence?” Mr. Adams asked.

“This guy has handled, his team, with the N.Y.P.D., they have handled over $78 million in illegal cannabis,” Mr. Adams added. “I got a lot of confidence in him.”

Mr. Miranda and Mr. Adams endorsed each other during their 2021 campaigns, when Mr. Miranda unsuccessfully sought a City Council seat and Mr. Adams was elected mayor.

The investigation of the sheriff was first reported by Politico, and The New York Daily News reported this week that it involved smoke shop raids.

Abdo Yafai, 34, was one of thousands of sellers who rushed to cash in after New York legalized cannabis sales and use in 2021. He opened two stores called Puffume in Queens with his nephew and a cousin in 2022, when unlicensed shops mushroomed as city and state officials hashed out a plan for enforcement.

When the state gave New York City stronger powers to shut down unlicensed shops this spring, Mr. Yafai found his stores in the cross hairs. They were raided and closed, and deputy sheriffs and police officers seized about $4,000, he said in an interview. They haven’t told him where it is.

“These are the people we call for protection when we’re robbed,” Mr. Yafai, 34, said. “And now they’re robbing us.”

During a City Council oversight hearing on Sept. 17, Sheriff Miranda said that the Police Department was responsible for handling seized cash, that no deputy sheriffs touched it and that he did not know how much had been taken. But his statements have been disputed by shop owners, their lawyers and the union representing deputy sheriffs.

An internal police report on the enforcement efforts obtained by The Times contains no details about cash seized from the stores, suggesting the police may not be keeping track of it. The report, prepared by the chief of patrol’s office, contains detailed information on inspections, the outcomes of administrative hearings and marijuana and tobacco seized.

Merchants and their lawyers have accused the sheriff and the police of violating their legal rights and taking their cash.

For many shops, proof is elusive because the Sheriff’s Office cuts power to shops’ security cameras as soon as raids begin, a practice that Mr. Miranda told The Times was intended to keep the owners from spreading the word to other shops.

Mr. Yafai said that other merchants whose shops had been padlocked were afraid to speak out because they feared being punished even more. He said that he had decided to talk about the issue after watching council members press the sheriff for answers.

Anusha Bayya contributed reporting.